Coca-Cola says it appreciates Trump's 'enthusiasm' after president says company will use real sugar in drinks
On Wednesday, President Trump took to social media, saying 'I have been speaking to Coca-Cola about using REAL Cane Sugar in Coke in the United States, and they have agreed to do so.'
In a statement posted online, Coca-Cola said, 'We appreciate President Trump's enthusiasm for our iconic Coca‑Cola brand. More details on new innovative offerings within our Coca‑Cola product range will be shared soon.'
The company is set to report quarterly earnings on July 22. Shares of the company were little-changed early Thursday.
Asked about "general health and wellness considerations" at a recent conference, Coke CFO John Murphy said, "It's one that we've wrestled with. We've at times embraced and at times, not done a great job, honestly, over our long history."
Currency, Coca-Cola uses high fructose corn syrup (HFCS) — a cheaper alternative to sugar — to sweeten its soda. Coca-Cola and PepsiCo (PEP) are the largest buyers of the sugar replicant in the country, tying HFCS producers' fortunes closely to the two beverage makers' production lines.
Archer-Daniels-Midland (ADM), one of the country's leading HFCS providers, fell more than 2.7% in pre-market trading. Shares in Ingredion (INGR), another leading corn syrup supplier, fell more than 5% early Thursday.
The sugar market, on the other hand, has reacted positively to the pronouncement as it eyes what would likely be a major contract from the seller of the most popular soft drink in the world.
The contract price on Sugar No. 11, the global benchmark futures contract for raw sugar trading, was up more than 1.3% on the news. The Teucrium Sugar Fund (CANE), a commodities-focused ETF that is intended to provide investors with exposure to sugar futures, was up more than 1% early Thursday. Seaboard Corporation (SEB) and Bunge Global SA (Q23.F), two of the country's major sugar importers and producers, remained relatively flat Thursday morning, up less than 1% and down less than 1%, respectively.
The move from the Trump administration also comes as the president continues his tariff negotiations.
Brazil, which produces a little less than a quarter the world's sugar cane, making it the top global producer, is currently facing a 50% tariff on goods from the country to the US starting in August.
The US has not yet announced a tariff rate for India, the second largest producer. China, the third largest sugar producer, currently has a 30% tariff in place.
Coca-Cola appears set to join a growing list of big food peers to announce ingredient changes, including Kraft Heinz (KHC), General Mills (GIS), and Nestlé USA, among others.
On Thursday morning, Coca-Cola rival PepsiCo (PEP) was asked about cleaner ingredients on its quarterly earnings call.
"We have a...technical road map to eliminate artificial colors and artificial flavors from our beverages the same as we do for our food business," CEO Ramon Laguarta said, "we'll be able to execute as the regulations evolve, or consumer preference evolve."
PepsiCo stock was up as much as 5% after the company reported results that topped forecasts.
Brooke DiPalma is a senior reporter for Yahoo Finance. Follow her on X at @BrookeDiPalma or email her at bdipalma@yahoofinance.com.
Jake Conley is a breaking news reporter covering US equities for Yahoo Finance. Follow him on X at @byjakeconley or email him at jake.conley@yahooinc.com.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Associated Press
5 minutes ago
- Associated Press
Trump's Environmental Protection Agency moves to repeal finding that allows climate regulation
WASHINGTON (AP) — President Donald Trump's administration on Tuesday proposed revoking a scientific finding that has long been the central basis for U.S. action to regulate greenhouse gas emissions and fight climate change. The proposed Environmental Protection Agency rule rescinds a 2009 declaration that determined that carbon dioxide and other greenhouse gases endanger public health and welfare. The 'endangerment finding' is the legal underpinning of a host of climate regulations under the Clean Air Act for motor vehicles, power plants and other pollution sources that are heating the planet. EPA Administrator Lee Zeldin called for a rewrite of the endangerment finding in March as part of a series of environmental rollbacks announced at the same time in what Zeldin said was 'the greatest day of deregulation in American history.'' A total of 31 key environmental rules on topics from clean air to clean water and climate change would be rolled back or repealed under Zeldin's plan. He singled out the endangerment finding as 'the Holy Grail of the climate change religion' and said he was thrilled to end it 'as the EPA does its part to usher in the Golden Age of American success.'' Tailpipe emission limits also targeted The EPA also called for rescinding limits on tailpipe emissions that were designed to encourage automakers to build and sell more electric vehicles. The transportation sector is the largest source of greenhouse gas emissions in the United States. Three former EPA leaders have criticized Zeldin, saying his March proposal would endanger the lives of millions of Americans and abandon the agency's dual mission to protect the environment and human health. 'If there's an endangerment finding to be found anywhere, it should be found on this administration because what they're doing is so contrary to what the Environmental Protection Agency is about,' Christine Todd Whitman, who led EPA under Republican President George W. Bush, said after Zeldin's plan was made public. The EPA proposal follows an executive order from Trump that directed the agency to submit a report 'on the legality and continuing applicability' of the endangerment finding. Conservatives and some congressional Republicans hailed the initial plan, calling it a way to undo economically damaging rules to regulate greenhouse gases. But environmental groups, legal experts and Democrats said any attempt to repeal or roll back the endangerment finding would be an uphill task with slim chance of success. The finding came two years after a 2007 Supreme Court ruling holding that the EPA has authority to regulate greenhouse gases as air pollutants under the Clean Air Act. Passing court muster could be an issue David Doniger, a climate expert at the Natural Resources Defense Council, an environmental group, said it was virtually 'impossible to think that the EPA could develop a contradictory finding (to the 2009 standard) that would stand up in court.' Doniger and other critics accused Trump's Republican administration of using potential repeal of the endangerment finding as a 'kill shot'' that would allow him to make all climate regulations invalid. If finalized, repeal of the endangerment finding would erase current limits on greenhouse gas pollution from cars, factories, power plants and other sources and could prevent future administrations from proposing rules to tackle climate change. 'The Endangerment Finding is the legal foundation that underpins vital protections for millions of people from the severe threats of climate change, and the Clean Car and Truck Standards are among the most important and effective protections to address the largest U.S. source of climate-causing pollution,'' said Peter Zalzal, associate vice president of the Environmental Defense Fund. 'Attacking these safeguards is manifestly inconsistent with EPA's responsibility to protect Americans' health and well-being,'' he said. 'It is callous, dangerous and a breach of our government's responsibility to protect the American people from this devastating pollution.' ___ Follow the AP's coverage of the U.S. Environmental Protection Agency at
The Hill
34 minutes ago
- The Hill
US consumer confidence improves slightly in July, but Americans remain concerned about tariffs
WASHINGTON (AP) — Americans' view of the U.S. economy improved this month, but Americans remain concerned about the impact of tariffs on their economic futures. The Conference Board said Tuesday that its consumer confidence index rose two points to 97.2 in July, up from 95.2 the previous month. The increase in confidence was in line with analysts' forecasts. In April, American consumers' confidence in the economy sank to its lowest reading since May 2020, largely due to anxiety over the impact of President Donald Trump's tariffs. A measure of Americans' short-term expectations for their income, business conditions and the job market rose 4.5 points to 74.4, however that's still well below 80, the marker that can signal a recession ahead.
Associated Press
34 minutes ago
- Associated Press
Cargo surge amid tariff turmoil drives the Port of Savannah to its 2nd busiest year
SAVANNAH, Ga. (AP) — Retailers scrambling to stock up ahead of anticipated stiff tariffs on imports boosted the Port of Savannah, one of the top U.S. container ports, to its second-busiest year ever, Georgia officials said Tuesday. The Savannah port moved 5.7 million container units of imports and exports across its docks in the 2025 fiscal year that ended June 30, the Georgia Ports Authority reported. That's an increase of 8.6% over the prior fiscal year and just shy of the record 5.76 million container units Savannah handled in fiscal 2022. The growth was caused in part by a surge in cargo since President Donald Trump returned to office in January promising heavy tariffs on China and other U.S. trading partners. But double-digit increases Savannah saw during the spring months were followed by a sizable drop in June container volumes as Trump's on-again, off-again tactics continued to fuel uncertainty. 'It's just going to be this very up-and-down time until things get settled,' said Georgia Ports Authority CEO Griff Lynch, who praised Trump's trade deal with the European Union as a step toward restoring stability. 'I'm sure all of it will come together. It's just a matter of timing.' The Port of Savannah is the nation's No. 4 seaport for cargo shipped in containers, giant metal boxes used to transport goods ranging from consumer electronics to frozen chickens by ship, rail and truck. Uncertainty surrounding Trump's tariff policies has resulted in gains, at least in the short term, at other major U.S. ports. A 90-day pause the Republican president placed on new tariffs announced in April gave American retailers and manufacturers a window to build up inventories ahead of new price hikes. What happens to trade volumes in the coming months may depend on a big deadline Friday, when dozens of countries face increased tariffs on goods shipped to the U.S. if they don't reach a deal with the White House. The Port of Los Angeles, the top U.S. container port, reported its busiest June ever to close out fiscal 2025 with 10.5 million container units handled — a 14% increase over the previous year. At the Port of New York and New Jersey, the biggest East Coast port, container volumes from January through May were up 6.5% compared to the same period last year. Gene Seroka, executive director of the Port of Los Angeles, told reporters earlier this month that Trump's tactics have created a 'whipsaw effect' as shipping volumes slow down with new tariff announcements, then surge suddenly to take advantage of delayed tariff start dates. The National Retail Federation is forecasting that cargo containers shipped through U.S. ports will drop by double digits from August through November. At the Port of Savannah, container volume jumped 22.5% in March to 533,995 units and remained above 500,000 container units through May. The streak ended in June, when container volumes fell 9.6% compared to a year earlier. Lynch said paused shipments of automobiles to Georgia prompted by tariffs on foreign cars contributed to a 16% drop in autos moving through the nearby Port of Brunswick in fiscal 2025. Last year, Brunswick was the top U.S. port for automobiles after passing the Port of Baltimore, which was shut down for weeks after the deadly collapse of the Francis Scott Key Bridge. Cargo volumes appeared flat in July said Lynch, who anticipates another decline in August. But he said he's optimistic the turbulence won't be prolonged. 'If they can nail these tariffs down, we'll get back to normal trade,' Lynch said.
